Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
(e)
On November 11, 2022, Dawson Geophysical Company (the "Company") entered into
letter agreements (the "Amendments") with each of the Executives hereinafter
specified in order to amend their respective existing employment agreements
dated as of October 8, 2014, as previously amended from time to time (the
"Existing Employment Agreements"), each between the Company and the following
executive officers of the Company (collectively, the "Executives" and each an
"Executive"): C. Ray Tobias, Executive Vice President and Chief Operating
Officer, and James K. Brata, Executive Vice President, Chief Financial Officer,
Secretary and Treasurer.
The Amendments extend the current term of the Existing Employment Agreements,
which was scheduled to end on February 11, 2023, until the close of business on
February 11, 2025 (the "Current Term"); provided, that on each anniversary date
of February 11, 2023 (the "Term Date"), the Current Term will be automatically
extended by one calendar year so that the Current Term will be a rolling
two-year period on each anniversary of the Term Date unless terminated by the
Company or the applicable Executive with proper notice.
The Existing Employment Agreements were previously modified to adjust the annual
base salary (the "Base Salary") for each of the Executives from March 30, 2020
through the Term Date (the "Adjustments"). The Amendments modify the Existing
Employment Agreements, effective on the Term Date, to return each Executive's
Base Salary to the level that existed prior to the Adjustments, as follows:
(i) Mr. Tobias - $400,000 and (ii) Mr. Brata - $350,000.
Each Executive is eligible for a retention payment provided that such Executive
continues to remain continuously employed through the Term Date in the following
amounts: (i) Mr. Tobias - $241,126 and (ii) Mr. Brata - $205,137. The amount of
such retention payments reflect the aggregate amount of base salary reductions
for each Executive pursuant to the Adjustments.
In the event an Executive, subject to certain provisions of the Existing
Employment Agreements, resigns or otherwise terminates his employment without
Good Reason (as defined in the Existing Employment Agreements), the Executive
shall be entitled to severance payments, in an aggregate amount equal to twelve
months of the Executive's then-current Base Salary, payable over the 12-month
period following the termination of employment.
Pursuant to the Amendments, the Executives have (i) agreed that the consummation
of the transactions contemplated by that Agreement and Plan of Merger by and
between the Company, Wilks Brothers, LLC and WB Acquisition, Inc. dated as of
October 25, 2021, as amended, does not constitute a Change of Control (as
defined in the Existing Employment Agreements), and (ii) waived all rights to
any enhanced severance payments under the Existing Employment Agreements with
respect to such transactions and any subsequent termination of employment.
The foregoing descriptions do not purport to set forth the complete terms
thereof and are qualified in their entirety by reference to the Amendments
attached hereto as Exhibits 10.1 and 10.2, each of which is incorporated by
reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
EXHIBIT
NUMBER DESCRIPTION
10.1 - Letter Agreement dated November 11, 2022 between C. Ray Tobias
and the Company
10.2 - Letter Agreement dated November 11, 2022 between James K. Brata
and the Company
104 - Cover Page Interactive Date File (formatted in Inline XBRL and
included as Exhibit 101).
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